On January 1, 2015, a foundation made a pledge to pay $30,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization as a salary supplement for a well-known researcher. On December 31, 2015, the first payment of $30,000 was received and paid to the researcher.
On January 1, 2015, a foundation made a pledge to pay $30,000 per year at the end of each of the next five years
to the Cancer Research Center, a nonprofit voluntary health and welfare organization as a salary supplement for a well-known researcher. On December 31, 2015, the first payment of $30,000 was received and paid to the researcher.
1. Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31.
2. Record the receipt of the first $30,000 on December 31 and the payment to the researcher. Indicate in which asset class (unrestricted, temporarily restricted) each account is recorded.
| 1 | Contributions Receivable (30,000 x 4.33) | 129,900 |
| Contributions-Temporarily Restricted | 129,900 | |
| 2 | Contributions Receivable | |
| Contributions-Temporarily Restricted | ||
| 3 | Cash | |
| Contributions-Receivable | ||
| Reclassification From Temporarily Restricted Net | ||
| Assets- Expiration of Time Restrictions | ||
| Reclassification to Unrestricted Net Assets- Expiration of Time Restrictions | ||
| (to record expiration of time restrictions) | ||
| Research Expense: Salary Supplement | ||
| Cash | ||
| (All expenses are classified as unrestricted) |
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